Opinion: Financed by attorneys who practice in the state, the fund reimburses losses caused by the dishonest conduct of lawyers.

“I wanted to thank the Arizona State Bar Client Protection Fund for the funds being returned to me. I’m very grateful that the money stolen by my former attorney will be coming my way.”

That is just one of many positive comments received by the Client Protection Fund. It’s a decades-old consumer protection program of the State Bar of Arizona. It has been around since 1961, when the attorneys in this state voted to create the program and finance it by assessing themselves $5 each year.

According to the formal declaration adopted by the State Bar Board of Governors, “The purpose of the Fund is to promote public confidence in the administration of justice and the integrity of the legal profession by reimbursing losses caused by the dishonest conduct of lawyers. ...”

Reimbursing victims of dishonest lawyers

The legal profession — like probably every other profession and occupation — has its bad apples. While the Arizona Supreme Court and the State Bar work together to regulate and discipline lawyers, the Client Protection Fund is there to reimburse clients who are victimized by the dishonest conduct of their lawyers.

An example of a claim is a situation where the client pays a deposit to a lawyer for certain work, but the lawyer does little or nothing to earn the fee and refuses a refund. Another instance would be a lawyer who forges the client’s signature on a personal-injury settlement check and keeps all of the proceeds. Similarly, a client whose lawyer steals the client’s money in the lawyer’s trust account has an eligible claim.

The total of the claims paid in a single year recently exceeded $413,000, and payments have averaged more than $346,000 per year the past four years. The fund can pay claims up to $100,000 per client and as much as $250,000 in claims against a single lawyer. The source of that money is the lawyers of Arizona.

Arizona's program is wholly self-funded

Today, every active attorney pays a $20 assessment each year to the fund. Unlike Arizona’s many government boards that regulate other professions, the entire State Bar organization, including the Client Protection Fund, is wholly self-funded. In other words, no tax dollars are spent to administer the fund and reimburse clients.

Clients who might have an eligible claim against a dishonest lawyer who has been disbarred, suspended, convicted of a felony related to the claim, or is deceased, should consult the State Bar of Arizona website at azbar.org for more information and the claim form.

The Client Protection Fund is but one way in which the State Bar fulfills its mission “to serve and protect the public with respect to the provision of legal services.” The five volunteer Trustees of the Fund are dedicated to that mission and strive to make victimized clients whole whenever possible. Our reward is their gratitude.

Charles “Chas” W. Wirken practices law at Gust Rosenfeld PLC in Phoenix, is the chairman of the board of trustees of the Client Protection Fund, and was formerly president of the State Bar of Arizona. Reach him at cwirken@gustlaw.com.